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There are too many charts that investors can track nowadays. There are too many indicators that investors can track nowadays. There are too many financial content sources that investors can utilize nowadays. However, there is one single chart that investors should track in the first months of 2023.

This important chart is the S&P 500 chart, which presents a pattern that can only be deciphered by those who are able to spot it. It will heavily and directly influence most of our 2023 forecasts, like our stock market crash prediction (we predict there will be no crash), our silver forecast, our article describing the similarities between 2008 and 2022, etc.

The one chart we are talking about is the first one in this post. The source of this significant chart: our premium research service, Momentum Investing.

In one of our most recent research notes, "Must-See Charts: Q1/2023 Will Be Crucial, 7 Timing Conclusions, 2008 Comparisons," we included many more charts such as the one provided. We also derived 7 conclusions from timeline analysis from those charts, which are crucial in tracking the path for markets in 2023.

This is a quote from our research note:

"The S&P 500 index chart has completed more than 75% of the current rounded reversal. If a really aggressive downtrend was about to start, it would have started a few weeks ago. This current pattern is approximately 80% complete.

"The very narrow space between the rounded pattern and the downtrend line is what stands out. This pattern has to resolve by mid-January approximately in ‘a’ direction."

While it feels very uncertain and not bullish at all, the long-term pattern is, at this point in time, maintaining a bullish structure. The rounded pattern that was dominant in 2022 is a bullish one.

It is very important to note that the S&P 500 crossed the crucial point, which is the point of 75% completion. With each passing day within this rounded pattern, the probability of a bullish outcome increases exponentially.

The big challenge will be seen once this index gets back to the falling trendline, which is likely going to happen in the first two to three weeks of 2023.

As a comparison, below is the S&P 500 chart in 2008, prior to the big decline going into Q1 of 2009. This is what we wrote in our research note:

"The SPY chart broke down right after 75% completion of the rounded pattern (arguably, there were 2 such rounded patterns). Note that the double bottom of 2008 was really weak, both in terms of price and time. Today’s reversal setup in the S&P 500 is more solid, at present day."

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